The SAVE Plan Ended. Which Student Loan Repayment Plan Should You Pick Now?

If you were on the SAVE plan, you have probably received an email or letter saying you have 90 days to pick a new repayment plan. Millions of borrowers are getting the same notice, and the choices are new: the Repayment Assistance Plan (RAP), Income-Based Repayment (IBR), and two fixed plans. Picking the wrong one can raise your payment or slow down forgiveness. Here is what changed, how each plan works, and how Legal Touch handles the switch for you.

The Short Answer

SAVE ended by court order in March 2026. Your servicer gives you 90 days from its notice to choose a new plan. For most former SAVE borrowers the real choice is between RAP, the new income-driven plan, and IBR, the older income-driven plan, with the fixed Standard and Tiered Standard plans as the fallback. If you do nothing, you are placed in a fixed plan automatically, and that payment can be a lot higher.

What the SAVE Notice Means

• Your deadline is personal. Servicers started sending notices on July 1, 2026, in groups. Your 90 days start on the date your own servicer sent its notice, not the date of a Federal Student Aid email.
• There is a final warning. If the 90 days pass, the servicer sends a "Final Notice" giving 30 more days.
• Then you are moved. Borrowers with no loans made on or after July 1, 2026, go to the 10-year Standard plan. Borrowers with a newer loan in repayment go to the Tiered Standard plan.
• Your servicer may be MOHELA, Aidvantage, Nelnet, Edfinancial, or CRI. The notice usually arrives by email from an address ending in studentaid.gov.

Your Plan Options in 2026

Repayment Assistance Plan (RAP)

RAP is the new income-driven plan that became available on July 1, 2026. Your yearly payment is 1% to 10% of your adjusted gross income, based on a sliding scale, divided into 12 monthly payments. Each dependent on your tax return lowers your payment by $50 a month, and the minimum payment is $10.

• Interest waiver. If your full, on-time payment does not cover the month's interest, the rest of that interest is waived, so your balance does not grow.
• Principal match. If your on-time payment reduces principal by less than $50, the Department adds a matching amount, up to $50.
• Forgiveness after 30 years of qualifying payments, and RAP payments count toward PSLF.
• Not for parents. Parent PLUS loans are never eligible, even if consolidated.

Example: A single parent with a $45,000 AGI and one child pays 4% of $45,000, which is $1,800 a year or $150 a month, minus $50 for the child. That comes to about $100 a month.

Income-Based Repayment (IBR)

IBR sets your payment at 15% of discretionary income, or 10% if you first borrowed on or after July 1, 2014. Your payment is never more than the 10-year Standard payment, and the remaining balance is forgiven after 25 years, or 20 years for newer borrowers. IBR is open only for loans made before July 1, 2026. Because it uses discretionary income, which subtracts a portion of the poverty line, IBR can be lower than RAP for some lower-income borrowers and higher for others.

Standard and Tiered Standard

The Standard plan is a fixed payment over 10 years. The new Tiered Standard plan sets a fixed term of 10, 15, 20, or 25 years based on your total balance, so larger balances get a lower monthly payment and more time. Fixed plans do not adjust for income, which is why being placed in one automatically can be a shock after SAVE.

PAYE and ICR

Pay As You Earn and Income-Contingent Repayment are being phased out and end no later than July 1, 2028. Most borrowers should not pick a plan that is closing soon unless there is a specific reason.

Side by Side

Common Mistakes That Raise Your Payment

• Ignoring the servicer email and getting placed in a fixed plan with a much higher payment
• Consolidating after July 1, 2026, without realizing it limits every Direct Loan to RAP or Tiered Standard
• Paying ahead on RAP, which can advance the due date and cost you that month's interest waiver and principal match
• Filing taxes jointly without checking how it changes the payment, since joint filers are measured on combined income
• Picking a plan that does not count toward PSLF while working in public service

What Legal Touch Does for You

You share your loan and income information with us once. We do the work:

1. We pull your federal loan records and confirm your servicer, loan types, and your SAVE deadline.
2. We compare your likely payment under RAP, IBR, and the fixed plans using your real income and family size.
3. We check how each choice affects PSLF, forgiveness timing, and any default or consolidation questions.
4. We prepare and submit the repayment plan request to your servicer.
5. We follow up until the new plan and payment show on your account.

Public service worker? See our PSLF help and our guide for military, firefighters, and police. In default? Read about default resolution by consolidation and rehabilitation vs. consolidation. Teachers can compare Teacher Loan Forgiveness and PSLF. Browse all of our Loan Help Services.

Frequently Asked Questions

Why did the SAVE plan end?

A federal court order ended the SAVE plan in March 2026. Every borrower who was enrolled in SAVE, or who applied for it, now has to move to a different repayment plan.

How long do I have to leave SAVE?

You have 90 days from the date your loan servicer sends you its notice. Servicers began sending notices on July 1, 2026, in groups, and plan to reach every SAVE borrower before the end of 2026, so deadlines differ from person to person. Look for an email titled "You Have 90 Days to Select a New Repayment Plan."

What happens if I do not choose a new plan in time?

Your servicer sends a final 30-day notice. If no plan is chosen by then, you are placed in the Standard Repayment Plan, or in the Tiered Standard Plan if you have a loan made on or after July 1, 2026. Those are fixed payment plans, and the payment can be much higher than what you paid under SAVE.

How is the RAP payment calculated?

RAP uses your adjusted gross income (AGI) from your most recent tax return. You pay 1% to 10% of AGI per year, with the percentage rising one point for each $10,000 of income, then divided by 12. Each dependent lowers the monthly payment by $50, and the minimum is $10 a month. For example, a borrower with a $45,000 AGI and one dependent would pay about $100 a month.

Is RAP or IBR better?

It depends on your income, family size, balance, and goals. RAP waives unpaid interest and adds up to $50 a month toward principal when you pay on time, but forgiveness takes 30 years. IBR is 10% or 15% of discretionary income with forgiveness after 20 or 25 years, and it is only open for loans made before July 1, 2026. For some borrowers RAP is lower; for others IBR is.

Do RAP payments count toward PSLF?

Yes. Full, on-time payments under RAP count toward Public Service Loan Forgiveness, and so do IBR payments and payments under the 10-year Standard plan.

Should I consolidate my loans before picking a plan?

Be careful. A consolidation made on or after July 1, 2026, limits all of your Direct Loans to RAP or the Tiered Standard Plan, and Parent PLUS loans are never eligible for RAP, even if consolidated. Consolidation still makes sense for some borrowers, such as people in default, but it should be checked first.

Does Legal Touch guarantee a lower payment?

No. Your loan servicer and the U.S. Department of Education make every decision. Legal Touch is not a law firm and makes no guarantees.

Get a Free Repayment Plan Review

Find out which plan likely gives you the lowest payment before your deadline passes. Check My Eligibility or call 800-261-2946.

Questions first? Contact our team.

Legal Touch is not a law firm and does not give legal advice. Results are not guaranteed. Every decision is made by your loan servicer or the U.S. Department of Education. Legal Touch is not affiliated with the U.S. Department of Education. Payment figures are estimates based on published plan rules. You can change repayment plans yourself for free through your loan servicer or StudentAid.gov.